hh.2 =What is the financial impact on a company when a customer returns a product for a refund?OA. Sales revenue will decrease because sales revenue will be debited.B. Sales revenue will increase because sales revenue will be credited.C. Sales revenue will not be impacted because the company has already accrued for estimated refunds and returns.OD. Returns expense will increase because returns expense will be debited.

A company sells its products to different customers.Not all customers are satisfied with the product…

Answered: What is the financial impact on a…

Business

Accounting

What is the financial impact on a company when a customer returns a product for a refund?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter5: Income Statement: Reporting The Results Of Operating Activities

Section: Chapter Questions

Problem 6Q

See similar textbooks

Similar questions

What is the impact on profit for the year if income overstated? a. no effect b. profit will be overstated c. cannot be determined due to insufficient information d. profit will be understated
Revenues come from sales of goods and services to customers and result in A.decreased assets or increased liabilities B.decreases in both assets and liabilities C.increases in both assets and liabilities D.increased assets or decreased liabilities
an increase in revenue is on the credit side hence a decrease in expense is also on credit side true or false
What does a high net profit margin of any company demonstrate? a. Company's effectiveness in converting its sales into profits b. Company's effectiveness in controlling its expenses c. 1 and 2 d. 1 or 2
At what point does revenue recognition occur? A. When the purchase order is received B. When the seller receives the money for the job C. When the seller has met performance D. When the purchaser makes payment
Which of the following is an indication that a company may be recognizing revenue prematurely? Relative to its competitors, the company’s:A . asset turnover is decreasing.B . receivables turnover is increasing.C . days sales outstanding is increasing
By modifying the break-even equation, a company is able to determine the sales required to earn a ________________ profit. a.banker's b.working capital c.target d. contribution
Choose the best
explain how Value drivers are related to financial statement analysis and explain their behavior over time. Can a company reply on net income as a valid measure of cash needed to pay fixed charges? Explain you answer Explain why companies do not include principle payment requirement when calculating earnings to fixed charges ratio.
What does a low ratio in Creditors Turnover Ratio indicate? a. Company collects the money fast from Debtors b. It shows the speed at which the inventory will be converted into sales c. Company is delaying the payment to the creditors d. Company is making the payment to the creditors very promptly
Revenues are: O A. decreases in assets resulting from delivering goods or services to customers. O B. decreases in retained earnings resulting from delivering goods or services to customers. O C. increases in retained earnings resulting from delivering goods or services to customers. O D. increases in liabilities resulting from delivering goods or services to customers.
What does a high ratio in Creditors Turnover Ratio indicate? a. Company is delaying the payment to the creditors b. Company is making the payment to the creditors very promptly c. It shows the speed at which the inventory will be converted into sales d. Company collects the money fast from Debtors